Hongkong Land - CGS-CIMB Research 2022-03-05: More Involvement In China Development Properties & Investment Properties

Hongkong Land - More Involvement In China Development Properties & Investment Properties

  • Hongkong Land (SGX:H78) reported flattish underlying profit in FY21 with flattish DPS. Base rent reversions in Hongkong investment properties (IP) will likely remain negative with rent relief in FY22F.
  • Hongkong Land expects more China development properties (DP) booking with increased unbooked DP sales; it will complete 1.1m sq m of China IP through FY26F to strengthen its IP revenue.
  • Reiterate ADD call on Hongkong Land. We cut FY22F/23F earnings per share (EPS) forecast for Hongkong Land by 5%/6% due to the new round of retail rent relief and slower recovery of office rents in Hongkong and Singapore. Our target price for Hongkong Land is lowered to US$6.1, still based on a 40% discount to NAV, as we also trim its NAV/share by 3% to US$10.2.
  • Hongkong Land's ongoing share buyback provides support to share price and potentially improves FY22F EPS by another 2%.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

Raymond CHENG CFA CGS-CIMB Research | Will CHU CFA CGS-CIMB Research | Steven MAK CGS-CIMB Research | https://www.cgs-cimb.com 2022-03-05
SGX Stock Analyst Report ADD MAINTAIN ADD 6.300 SAME 6.300

Previous report by CGS-CIMB:
2021-11-02 HongKong Land - Recentralisation To Drive Better Operations

Relevant links:
Hongkong Land Analyst Report,
Hongkong Land Target Price,

Hongkong Land Share Price History,
Hongkong Land Announcements,
Hongkong Land Dividends/ Corp Actions,
Hongkong Land News Articles


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